High oil prices to blame for decline in automobile markets

Carlos Ghosn, executive president of the French automotive group Renault-Nissan, has said that a “large portion of the recession” that is being experienced in the world automobile market is as a direct result of rising oil prices and volatility of raw materials.

“Much of the recession on the automotive market in the United States, Japan and a number of countries in Western Europe is amplified, even caused by the significant increase in oil prices, but also the volatility of raw material prices,” Ghosn was quoted as saying Thursday on France’s Europe 1 radio.
This “will help the automobile to transform itself,” said the French executive, referring to an increased drive for innovations such as electric and fuel-cell-powered cars or even the development of connectivity between vehicles.

“For example, In France, from as early as 2010, you’ll start to see the emergence of electric-powered cars” that would be much more “reliable and modern,” said the Renault-Nissan boss, adding that the prevailing high fuel prices would push companies to try to be more innovative.

CCTV